:
Thank you, Mr. Chair and members of the committee.
Thank you for granting me the privilege and the pleasure of being with you this morning. Thank you also for signalling the presence of some of our key officials at ESDC and CMHC.
[Translation]
We share a vision for Canada that is both positive and ambitious. We all believe in a country that is diverse, prosperous and inclusive, a country where individuals have real and equal opportunities to participate fully in our society and our economy to their full potential.
Reducing poverty is the first step to putting all Canadians on an equal footing.
[English]
I understand the committee is beginning its study on the issue of poverty in Canada. While this is also an important part of my mandate and of great personal interest to me, it is a complex issue that no single government, organization, or individual can tackle alone. With that in mind, I would like to table a discussion paper entitled “Towards a Poverty Reduction Strategy”.
[Translation]
This document is designed to open a dialogue on the subject of poverty reduction in Canada. It includes perspectives and issues that, and I say this very respectfully, may be helpful to you as you conduct your work.
Let us start from the beginning. About one in every 10 Canadians lives in poverty. We know that these Canadians are less likely to have access to nutritious food, adequate housing and safe working conditions. They experience shorter life expectancies and higher rates of chronic diseases, certain cancers, stress and mental health problems.
We have the ability to help change this, and we will do so by working together.
[English]
That's why we intend to work with community and not-for-profit organizations, indigenous people, universities, companies and, importantly, those people who themselves have direct experience with poverty.
Mr. Chair, as we develop our strategy, we are mindful of the poverty reduction strategies and initiatives that have already been implemented by provinces—all of them except one—territories, and municipalities. It will be important for our Canadian poverty reduction strategy to build on and align with these existing efforts. Let me signal that we will also build on the many parliamentary studies that have been produced in recent years. That again signals the important work that you're about to do.
[Translation]
You also probably know that I have recently announced our new “Tackling Poverty Together Project“. It is to no one's surprise that a large number of innovative and groundbreaking initiatives to tackle poverty are taking place in towns and cities across the country. This project consists of case studies in six communities across Canada that will help us better understand poverty and how to reduce it by establishing direct and inclusive partnerships with community organizations that play a vital role in delivering programs and services that support our people and our communities.
At the same time, this project will allows us to learn directly from people who know first-hand what it is like to live in poverty.
[English]
As I signalled earlier, Mr. Chair, and as you know, poverty is a complex social issue. There is no single cause and no single solution. If we are going to reduce poverty effectively in Canada, we need a multi-dimensional approach.
The discussion paper that I just mentioned highlights a range of areas that you might want to look at, which affect and are affected by poverty, including income, social participation, security, housing, employment, and health. For example, too many Canadians still lack an adequate income to meet their basic needs. An estimated three million Canadians are living in poverty—that's about 1.9 million families.
[Translation]
One of the things I would like to point out is that poverty is not synonymous with unemployment. Over 700,000 Canadians live in an household where the main income earner is considered working poor. Canadians in this group of working poor work similar hours to the average, yet they earn less money and are more likely to face unpredictable work hours, making it especially difficult to balance work and family responsibilities.
In addition, income is so deeply connected to other aspects of poverty that a change in status can signal the start of a dangerous spiral that is a problem not only for those people, but also for their entire family. For example, a significant loss of income can make it impossible for an individual or a family to keep a stable housing situation. As we know, without stable housing, it becomes difficult to find and keep employment.
[English]
In our poverty reduction discussions, we have to admit that safe, adequate, and affordable housing is vital for one's well-being.
Our objective in that regard is clear. We want to re-engage the federal government in improving the housing conditions for all Canadians, including those living in the north and in indigenous communities. For that purpose, we are currently developing a national housing strategy, which is going to be the first housing strategy in four decades.
This strategy is supported by existing collaboration among the various levels of government, indigenous and private sector organizations, not-for-profit groups, and housing experts. In that regard, budget 2016 signalled a milestone, the historic reinvestment of $2.3 billion, the first such reinvestment in over 20 years, in new funding to improve access to more affordable housing for Canadians.
Budget 2016 also provides significant additional funding to increase affordable housing for seniors, housing in northern communities; to support the renovation and retrofit of existing social housing stock, often in difficult conditions; and to build and renovate shelters for victims of family violence.
We are also taking steps to ensure that those low-income households living in non-profit and co-operative social housing projects, where operating agreements will expire over the next two years, can continue to live in their rent-geared-to-income units. Up to $30 million is available to renew subsidies for all federally administered social housing units until the end of March 2018.
Budget 2016 also included two important new initiatives to encourage the construction of affordable rental housing and to fight poverty.
Through the rental housing financing initiative, up to $2.5 billion in low-cost loans will be made available over five years to municipalities and housing developers during the earliest and riskiest phase of developing affordable rental housing.
Just last week, on Friday, I announced that over $200 million is being provided by CMHC for an affordable rental housing innovation fund to test innovative financing, partnership, and business approaches to encourage the construction of up to 4,000 affordable rental housing units.
[Translation]
Budget 2016 also announced additional funding of nearly $112 million over two years, which represents the first investment in 16 years in the Homelessness Partnering Strategy, or HPS.
:
It's a good story, so I will repeat it.
Some hon. members: Oh, oh!
[Translation]
Budget 2016 also announced additional funding of nearly $112 million over two years, the first investment in 16 years into the Homelessness Partnering Strategy, or HPS, to strengthen the work done in communities to support homeless Canadians in finding stable housing.
In short, Budget 2016 puts in place a number of significant housing measures for two key reasons. The first is that we knew there was a crying need for them. The second is that we wanted to send a clear signal that the Canadian government's leadership is being reestablished in response to our families' housing needs.
Speaking of Budget 2016, we would of course be remiss if we did not mention the new Canada Child Benefit, which will ensure that nine out of 10 Canadian families will receive higher benefits than before. On average, these nine out of 10 Canadian families will now receive nearly $200 more per month, and this amount is not taxable. This new monthly benefit is more equitable, simple and fair. Thanks to this new benefit, about 300,000 children, along with 200,000 of their parents, are transitioning out of poverty.
The poverty rate among our children and families will decrease from 11.2% to 6.7%, the largest drop in our country's history, and will result in the lowest child poverty rates in the entire history of our nation.
In addition, we are actively working with our partners in order to find out how this benefit can best support families and First Nations living on reserve and in the North. We are also looking to eliminate all obstacles that could prevent our First Nations families from accessing the Canada Child Benefit.
Moreover, in Budget 2016, we also increased the Guaranteed Income Supplement for Single Seniors. This measure will considerably improve the financial security of about 900,000 seniors throughout the country and lift about 13,000 of them out of poverty through an increase in the Guaranteed Income Supplement benefit, which could reach nearly $1,000.
Finally, we have also concluded an agreement with the provinces to improve the Canada Pension Plan to make up for the fact that many Canadians will likely not save enough for retirement, putting them at risk of poverty in their later years.
[English]
As you know, the CPP provides workers with portable, fully indexed, lifetime benefits, and it does so with low administrative and personnel costs.
As lifespans increase, enhancing the CPP will reduce the risk that Canadians will outlive their savings. It will also protect them from market downturns and provide a steady and secure stream of income when interest rates are low.
From a poverty reduction perspective, this enhancement is good news. It will help low-income workers, both now and in the long term. While low-income workers will make contributions for the enhanced CPP, these higher contributions will be more than offset by an increase to the working income tax benefit, also called the WITB, which will lift almost 6,000 Canadians immediately out of poverty in the next few months. In addition, this enhancement will give low-earning households more financial protection in the event of a disability or the death of a wage earner, through higher disability and survivor benefits.
As a result, low-income workers will be better off during their working years, thanks to the WITB, and better off when they retire because the enhanced CPP will boost their total retirement income. For example, if the enhancement were fully in place right now, the number of Canadian families at risk of not saving enough for retirement would be reduced by 25%, from 24% to 18%. Nearly 300,000 families would no longer be at risk. For those still at risk, the degree of under-saving will be reduced substantially. Analysis by Finance Canada indicates that the median after-tax retirement income gap will be cut from $8,300 to $3,700, that is, by more than 50%.
Therefore, not only will the enhancement help to ensure a more secure retirement for middle-class Canadians, it will also contribute to our efforts to reduce poverty now and in the future.
[Translation]
All of these actions I have discussed reflect our determination to reduce social inequality and to ensure prosperity for all Canadians. The study you will be carrying out in the committee will play a large role in achieving this goal.
Mr. Chair, members of the committee, as we continue to partner on addressing poverty reduction in Canada, I would like your views on the questions we have included in our discussion paper.
For example, how do you define poverty? How should it be measured? Are there data gaps that need to be addressed to help improve our understanding of poverty in Canada? What targets should we pick to measure progress?
[English]
Reducing poverty requires concerted action. An economist whom I got to know in my earlier life, Amartya Sen, who is also a winner of the Nobel Prize in economic science, said that the success of a society is to be evaluated primarily by the capability that members of a society enjoy, and that poverty is not just a lack of money, but not having the capability to realize one's full potential as a human being.
This all supports our collective and ambitious vision of a prosperous, diverse, and truly inclusive country, a country where all can profit from real and fair chances to succeed.
[Translation]
In closing, I look forward to your contribution, the contribution of your committee in developing a strategy to reduce poverty.
I will be pleased to answer any questions and hear what you have to say.
Thank you.
As you heard earlier, we are building, partly with your support, the national housing strategy. All MPs, all stakeholders, and all Canadians are invited to contribute to that. It's a very important strategy, as I signalled earlier. It's the first in four decades. It's there for a very simple reason. It's there to tell us in Ottawa how we can re-engage our federal government in assisting the housing needs of our families.
We've been relatively absent over the past years. That's not a partisan comment, because this dates back some years. Now we want to know how to get back again. To do that, we need to engage again with our stakeholders, communities, and other levels of governments.
In that area particularly, our country is ready. The signals I receive are clear: people have been waiting patiently, and now they want to engage with us to work in partnership for all kinds of Canadians, including lower income Canadians. The housing condition spectrum ranges from homelessness, which is the most dire circumstance Canadians can find themselves in, through to shelters and transitional housing, covering, among other things, the needs of victims of family violence. Also, there are the very difficult conditions in which many of our indigenous sisters and brothers find themselves in regard to social housing, which has been neglected for some years by our governments. There is also the need to address, as we did yesterday, some of the challenges we find in markets where house prices are both high and, perhaps, non-sustainable.
Mr. Minister, I would like to begin by thanking you for speaking with us today and the manner in which you did so.
I am an eternal optimist; in that spirit, in the context of this study, I join this committee with great conviction. I acknowledge your sincerity and motivation, which will surely influence all those with whom you work to achieve results.
As you pointed out, we need to look at what has already been done. We know that, in 2000, if memory serves, the House of Commons unanimously adopted a resolution to eliminate child poverty. Yet, as we all know, 16 years later, children are still living in poverty.
So we must consider what has already been accomplished. In your presentation, you mentioned that, five years ago, a committee such as ours conducted a study on poverty which led to a series of recommendations. In its report, the committee mentioned that, five years later, any actions taken should be reviewed. It seems clear to me that our committee should begin with this oversight effort that was already begun.
You ended your presentation by inviting all Canadians to participate in the discussion. A few months ago, last February 26, I decided to participate myself by introducing at first reading, Bill . That bill followed 10 years of discussions. I am the third MP to introduce an anti-poverty bill, following similar bills by my fellow MPs Martin and Crowder. We held consultations across the country. So anti-poverty groups have been considering this for the last 10 years, and this bill is the combination of all that thinking. I already have the support of the main organizations, and currently, 3,000 organizations from across the country are reviewing the bill.
I therefore hope Bill will be adopted at second reading on October 31. Indeed, I would be pleased if this committee could at least consider the validity of this approach towards reducing poverty.
I would like to know if I can count on your support and that of your government on October 31 when my bill will be studied at second reading.
:
So I will take your answer as a “maybe” and remain hopeful.
Many poverty reduction strategies can be adopted at the same time. I am, however, happy that, in your remarks, you talked about “the” strategy. In fact, I think it should be what I call an “umbrella strategy”, equivalent to what the Government of Quebec does as part of its sustainable development strategy: each time a department takes action, it must assess whether or not the action contributes to sustainable development.
You say that we need indicators, but we also need assessment mechanisms. Each time the government or a department takes action, we must be able to use a comprehensive strategy to assess whether or not that action reduces poverty. That is what I propose in my bill. We need a mechanism that enables us to report annually to the House of Commons on how we contributed to poverty reduction over the course of the previous year.
Without mechanisms like that, we will be unable to determine down the road that, for example, the 2015-2016 committee, through its recommendations, helped reduce poverty. That would also help verify whether your department fulfilled its mandate.
Do you agree with me that saying both strategies helped reduce poverty and being content with that is not enough, and that instead we need to ensure that all of our strategies help reduce poverty?
:
Thank you, Mr. Robillard.
As I was trying to say a bit earlier, this support program for those living in poverty is part of a broader program by the Canadian government based on three elements: economic development, sustainable development and inclusive development. Inclusive development, a key aspect of the program, is for everyone, especially seniors whose living conditions can vary a great deal. We must recognize that seniors' living conditions can be quite different, whether we are talking about health, economic security or family, and that diversity means we must demonstrate great scientific and social sensitivity.
For example, we brought the age of eligibility for the Old Age Security Pension back down to 65. That does not necessarily mean everyone must retire at the age of 65, it is not a fixed retirement age. Retirement age is a personal decision made according to one's capacity for work, and as a function of conditions that are often unrelated to that capacity: each person's working conditions, state of health and family circumstances. Bringing the eligibility age back down to 65 demonstrates a social sensitivity that will prevent seniors aged 65 and 66 from living in a society in which the poverty rate for that age group would go from 6% to 17%; in which 20% of the most vulnerable seniors would lose 35% of their income; in which 40% of the burden resulting from the former government's reforms would be born by 20% of the weakest and poorest of our seniors; in which middle-class women in that age group would lose 34% of their income, whereas men would only lose 11%. One hundred thousand seniors would fall into poverty. So this is an important social sensitivity given the context of disparity amongst seniors.
One of the elements that contributes to that disparity is income security. Over time, reforming the Canada Pension Plan will go a long way to strengthening that security. For the most vulnerable amongst us, increasing the Guaranteed Income Supplement will also play an important role. That measure alone will pull 13,000 seniors out of poverty.
Finally, there is the issue of investing in housing. Seniors' housing conditions are crucial for their well-being, and in the context of our considerable investments in housing, we have clearly indicated that a substantial portion of those funds be allocated for seniors.
:
I need more than a minute and a half.
First, welcome, Minister. It's great that you're here, and I certainly applaud you personally and your department—certainly, Dan, Josée, Mathieu, Ariel, and Terry—for the work that you're doing to help Canadians in need.
One of the things I constantly see—and we talked about this at our last committee meeting—is poverty study after poverty study throughout Canada. They are on shelves everywhere, and we can always pull them out and read them, yet I find it frustrating to see the lack of innovation with respect to poverty reduction.
If you want to compare poverty to, say, the environment, you can look at how far we have come, despite what some members opposite might say, in thinking about carbon and greenhouse gases and things like that. There has been a lot of innovation with respect to things like that. But if you look at the poverty side, there really hasn't been a lot of new thinking.
I'd like to get your comments on how important innovation is for poverty reduction and what incentives the government could potentially give to groups and organizations that are innovative in reducing poverty.
Thank you.
:
Good. That should be all right.
There are three levels at which we want to innovate.
First is the ability to dive into communities, as we are doing with the Tackling Poverty Together project, to understand fully the incredible depth of actions and attitudes of our communities towards reducing poverty. It's so comforting to see this dedication in so many of our communities and families towards making their society and their environment more inclusive. That's the first step. The second step, once we've done that, is to build our poverty reduction strategy together, which ideally will be an important document, and, therefore, perhaps even more important than the earlier documents you mentioned.
Once we've done that, then the two levels of additional innovation will be to partner in our actions with all of these groups and folks who are so willing to work with us, and to do this in a different manner by trying to connect better the different dimensions of the lives of our families—housing, child care, training, labour force participation, public transit, and green infrastructure.
:
Thank you, Chair, and thank you, Minister, for being here. I want to give kudos where they are deserved. I sent you a letter regarding New Horizons and seniors' issues, and within a few days I had a response from you. You are the fastest responding minister, by far. I still have letters from last November waiting for a response from a minister, so to get a response in three days was fabulous.
Minister, as the critic for seniors, I've had a number of opportunities to meet Canadians across the country on various seniors issues. Seniors poverty and elder abuse are very important, but the number one issue that I'm hearing about from seniors groups is the need for a minister for seniors and a national seniors strategy. Canada has a grey tidal wave coming. We know it's coming, and Stats Canada has told us it's coming. Indeed, we see it now with the baby boomers. I'm in that group. I'm 66 years old. There's this tidal wave of grey coming, and considering the unique needs of Canadian seniors, we have to deal with it.
In hindsight, we probably should have come up with a national seniors strategy 15 years ago, or 10 years ago when we were the government.
Minister, I plead with the government to come up with a national seniors strategy, because without a strategy, and without working with all levels of government to come up with a proper strategy, we are going to be in trouble as a country. Please, make that a priority. Dr. Avery, with the Canadian Medical Association, is going around and also saying that. It's a number one priority.
When it comes to poverty, there are some very wealthy Canadian seniors, but there are also seniors who are living in poverty. The Library of Parliament provided each of us with a document that indicates that there's been a significant decrease in poverty among seniors over the past few decades. It's dropped from 29% of Canadian seniors to 3.9% in 2014. There has been a significant drop, and there have been some good successes, not just by the previous Conservative government but also by previous Liberal governments. There have been significant successes.
The discussion paper by the Library of Parliament downplayed that and said that we've only seen “some” successes. Well, there have been significant successes, not just “some” successes. The discussion paper zeroes in on single seniors. The statistics show that 30% of poor seniors are couples, and 70% of poor seniors are single. The government is focused on just the single seniors, and yet we've seen in the news over the last many years, and almost every few months, couples who are being separated. It's heartbreaking.
I'm asking the minister to comment on this. Would the government be willing to expand its focus from single seniors to any seniors living in poverty? The Prime Ministers made a promise during the election campaign. He mentioned single seniors, but if you're a senior and in poverty, then you also need help, even if you've been together as a married couple for 50 to 60 years. Would the government be willing to reconsider and expand that, so that if you're a senior in poverty, as a couple or as a single, then you would get the help? You'll get that GIS because $1,000 a year does help. For the 30% of Canadians who are in poverty and are not going to get the help they need because they're living together, would the government show compassion and expand its focus to include them?
:
Thank you. I was going to spend that much time thanking you for complimenting my team on the speed with which is responded to you. I didn't hear from you anything about the quality of the letter you received. Speed is an issue, but quality, I suspect, is also one. So if you have any guidance for us, or appreciation about, the quality of the letter you received, that would be kindly received.
On elder abuse, I must acknowledge that a previous government, in collaboration with the provinces and territories, did serious work in building our understanding of the causes and consequences of elder abuse. I had the privilege of getting to know that work earlier this year.
The poverty reduction strategy and the national housing strategy—key elements of my mandate letters—have obvious and direct relevance to the well-being of our seniors. The quality of the work we do around this table, when it comes to building the poverty reduction strategy, will feed into the quality of our ability to support our seniors over the long term. That's true for the poverty reduction strategy, and that is also true for the national housing strategy. For seniors, housing needs are key to their well-being and to their ability to look forward to spending the rest of their lives with income security and physical security.
I take note of your suggestion of a national seniors strategy. This is a very important idea that we should be discussing in this context.
How do we fight seniors poverty? Eighty per cent of seniors living in poverty are single and living alone. Seventy per cent of those seniors in poverty are women. So basically, the most significant poverty challenges faced by our seniors are faced by single women. They are, of course, vulnerable from an economic perspective, but they are also vulnerable from an elder abuse perspective, from a physical security perspective, and from a family security perspective. That broad vulnerability is very concerning. I meet so many of these single women. It is often very challenging to feel the degree of their natural anxiety and to feel their need for us to be supportive of their living conditions, circumstances, and needs. That is why the GIS was targeted for them. However, the CPP expansion, the restoration of the age of eligibility for old age security and GIS benefits to 65, the significant housing investments we are going to make, and the seniors price index that we're going to construct are all measures that will have a key, tangible impact on every senior, whether living alone or not.
:
I would like to give you a few specific examples to give you inspiration.
As MPs, we are all asked to contribute to Christmas hampers during the holiday season. We distribute food to those who are less fortunate than us. We all do it and we do so in good faith.
I will always remember one occasion where we went to deliver a Christmas hamper to a family that didn't even have a refrigerator or an oven. I have been in politics for eight years. So it happened when I was a provincial MNA, not a federal MP. I wondered what the point was of giving these poor people a huge turkey or a huge steak, when they didn't even know what to do with it.
It led me to take the following action. In provincial ridings, MPs have a very high discretionary budget, around $80,000. I had been to the food banks to say that I was ready to help them, but that I wanted them to use my money to hire a nutritionist who would give courses in the communal kitchens every week. In those classes, people would actually be taught how to cook. That would be better than giving them a frozen turkey that they wouldn't know what to do with and that might end up in a landfill in March.
There's something else I want to tell you, but I don't want to say exactly at what point it happened in my political career. I remember that a completely destitute woman came to see me. We tried to help her. She lived in Sainte-Foy, and I lived in Loretteville, about 20 minutes away by car. I had told her that this worked out well and told her which bus to take from her house to come and see me. She answered that that wouldn't be necessary because a taxi was waiting at the door. This poor woman had paid $30 to take a taxi and she had been with me for half an hour. So she probably had to pay $150 for the taxi. She didn't understand. That's when I said to myself, for Heaven's sake, even if we gave her money, I'm not sure it would help.
That's why I think if we want to help people get out of poverty, we need to give them the tools necessary to take control of their own lives.
As for the food strategy, are you in favour of the idea of helping food banks? The government could support these people by offering classes led by nutritionists, who would teach them how to eat well and how to cook properly. What do you think?
:
Thank you to the departmental officials for being with us today.
I want to focus on seniors housing. In the different forms of consultation, I've heard a number of times the importance of taking care of our seniors at the end of their lives. I was at a care facility, where the manager of that facility said that Canadians cannot afford to build enough housing to take care of our aging population, and that we have to think of how to do it differently. The average stay in a care facility at end of life for a senior is 18 months. He said that if we can reduce that to nine months, we can afford to take care of our senior population in the last days of their lives, providing dignity, pain management, and the care that Canadians deserve.
The government had made a number of comments about providing housing. That's good. Yes, we can improve and we're going to have to improve, but I think it's a combination of both. Providing better home care would be an issue for the Department of Health, not for you, but in the strategies of different departments of government federally, is there any thought given toward that? There's a limit to what we can build, and we need to change how we're providing care. A lot of this is provincial jurisdiction. Are there negotiations and discussions going on provincially, federally, and municipally? That's why I believe it's so important that we have a national strategy. Without a strategy, we're not going to get it done, so are discussions happening?
:
Thank you very much. It has been a pleasure to hear from you again this morning.
Thank you very much for being here and allowing us to kind of pick your brains for a little bit.
If you don't mind sticking with us for a few more moments here, it's an absolute pleasure to announce that this committee has made a decision with respect to the eternal flame fund. For those folks who have ever walked by the eternal flame outside and wondered what happens to the money that gets thrown in there, it's up to this committee to determine where that money goes. It is an absolute pleasure to welcome Brian Hill, the recipient of the 2016 edition of the Centennial Flame Research Award.
Welcome, Mr. Hill.
Quite simply, this annual monetary award is given each year to a person with a disability to enable him or her to conduct research and prepare a report on the contributions of one or more Canadians with disabilities to the public life of Canada or the activities of Parliament.
Born with a genetic retinal disorder, Mr. Hill is widely considered one of Canada's best Paralympic swimmers, competing successfully in multiple Paralympic games. Mr. Hill's research will focus on the impact of sport upon the lives of persons with a disability, and how access to sport at different stages of life empowers persons with a disability. In addition, Mr. Hill will consider what obstacles exist that prevent disabled Canadians from accessing sport.
We do have a few people who would like to speak, but very briefly, because we have a very—